1.1. Capital flows. Money coming from abroad into Spain
According to Spanish legislation, you can only enter and leave Spanish territory with capital not exceeding 10,000.00 euros per person per trip. Higher amounts must be declared at customs control. You should also find out what the tax and customs limits are in your country of origin in order to avoid any offences or administrative infractions.
1.2. Private documents of sale.
The buying and selling procederes consist of several phases. Some are between private persons and take place in a notary’s office. Generally, the seller agrees with the buyer to reserve the property for a certain period of time, subject to a deposit of around 10% of the price of the property. This operation is formalised in private documents, which can have many denominations and have certain differences in their legal nature: deposit contract, option to purchase, reservation document, promise of sale, etc. In these documents we could find the basic conditions for the future purchase, such as the signing period, the purchase price, the distribution of expenses and taxes between buyer and seller and the consequences of not formalising the future sale (normally the loss of the deposit -if the buyer fails to comply with it- and the return of double the amount paid -if the seller fails to comply with it-).
1.3. Signature of the deed of sale
It is signed at a notary’s office and contains the purchase agreement. Generally, on the date of signing the deed, the full price is paid, the key is handed over and, with it, the property is transferred to the owner. According to the Anti-Money Laundering Rules, the payment must be made by bank intervention, usually by cheque drawn on a non-resident current account. Therefore, the buyer must open a bank account in Spain. In addition, before the date of signature, he must have obtained the NIE (foreigner’s identification number).
If you need a mortgage, a representative of the bank must appear at the notary’s office to simultaneously sign another deed: the mortgage loan contract. Before signing the mortgage contract, the bank and the buyer will have had to agree on the terms and conditions: financing, repayments, etc.
1.5 Paying taxes.
After signing the deed, you should pay the taxes. For this purpose, the buyer must be registered in the Spain’s Agency for Tax Administration (Agencia Tributaria) as a taxpayer, otherwise you will not be able to pay taxes.
1.6. Registration in the Land Registry.
Once the transfer taxes have been paid, the property must be registered in the Land Registry in order to obtain maximum legal protection. Transfer taxes must be paid for the inscription to take effect.